Rosoboronexport enters steel industry

The Russian state arms export monopoly Rosoboronexport has stepped into the steel business by acquiring Volgograd-based special grade steel producer Red October through Russpetsstal, in which it owns a 25 percent stake through its wholly-owned subsidiary Promimpeks. The deal between Russpetsstal and the pervious owner of Red October Midland Steel Industries Limited was concluded on January 30, 2007. The deal is expected to be closed in late February up on the receipt of the Russian Federal Antimonopoly Service approval. Russpetsstal was founded in August 2006 with a view to the ’creation of a metallurgical holding through the consolidation and development of assets which produce special, weapon grade steel and alloys'. Red October is one of Russia's main producers of special grade steels used in the auto-manufacturing and aviation industries, along with the chemical, oil and energy machine manufacturing and gas and oil industries.